Question
GBA Macao Group, which is a group listed in Shenzhen, was incorporated by two sisters. Miss GiGi Young and Chantel Young, in Macao in 1990.
GBA Macao Group, which is a group listed in Shenzhen, was incorporated by two sisters. Miss GiGi Young and Chantel Young, in Macao in 1990. GBA was originally involved in hotel investment and hotel management business in Macao but has later expanded presence in many business in many places. GBA is now sourcing funds in Shenzhen and Hong Kong and has expanded presence in Europe. GBA prepares its financial statements in accordance with the International Financial Reporting Standards. In Europe, GBA has nominated an official representative to operate the representative office in Frankfurt and is acquiring hotel interests in Europe. GBA may incorporate new entity in Europe by using the name of GBA Europe. While additional funds are needed, GBA is considering a listing in Frankfurt and is not sure whether its holding, GBA Macao, or new entity, GBA Europe, should be listed. To meet statutory and listing requirements in Shenzhen, Macao, Hong Kong and Frankfurt, the consolidated financial statements of GBA Macao Group have to be presented in different currency. Required: Advise GiGi and Chantel how to determine functional currency and what the functional currency for GBA's presence in Shenzhen (in RMB) and Frankfurt (in Euro).
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